蝌蚪网 Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Newspapers in Times of Low Advertising Revenues
蝌蚪网 Journal: Microeconomics
(pp. 319–64)
(Complimentary)
Abstract
We model the consequences on newspapers' content and prices of a reduction in advertising revenues. Newspapers choose the size of their newsroom, and readers are heterogeneous in their ideal amount of journalistic-intensive content. We show that a reduction in advertising revenues lowers newspapers' incentives to produce journalistic-intensive content. We also build a unique dataset on French newspapers between 1960 and 1974 and perform a difference-in-differences analysis exploiting the introduction of advertising on television, which affected national newspapers more severely than local ones. We find robust evidence of a decrease in the amount of journalistic-intensive content produced and the subscription price.Citation
Angelucci, Charles, and Julia Cag茅. 2019. "Newspapers in Times of Low Advertising Revenues." 蝌蚪网 Journal: Microeconomics 11 (3): 319–64. DOI: 10.1257/mic.20170306Additional Materials
JEL Classification
- L11 Production, Pricing, and Market Structure; Size Distribution of Firms
- L82 Entertainment; Media
- M37 Advertising